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Running head: INDUSTRY FORECAST ANALYSIS1Industry Forecast AnalysisMichael Allen SeraajBSAB 410 Management of Air CargoEmbry Riddle Aeronautical UniversityMarch 3, 2015
INDUSTRY FORECAST ANALYSIS 2Industry Forecast AnalysisThe Boeing Current Market Outlook (CMO) refers to the long-term forecast of aircraft and traffic volume demand. CMO enables the corporation to shape its product strategy and formulate long-term business plans. The company shares the projections with the public to inform decisions by suppliers, airlines and the financial community (Boeing 2014).Boeing starts each year fresh, considering the impact of present business conditions and develops an analysis of the future or long-term drivers of the air travel. The CMO details demandfor freight and passengers aircraft, both for fleet expansion and for replacement of aircraft that retire within the forecast period. The firm also projects the need for passenger-freighter conversions (Tinseth, 2014).Impacts of market forcesThere are numerous market forces that affect the CMO of Boeing. Some of these forces include fuel prices, environmental regulation, economic development and growth, airplane capabilities, market liberalization, other means of transport, emerging markets and business models. Fuel is an enormous constituent of an airline cost structure. Manufacturers have,